Losing your job is never easy…
Whether it came as a shock or you saw the writing on the wall, finding yourself suddenly out of work can leave you feeling overwhelmed, anxious, and unsure of where to turn next.
But here’s the thing: you aren’t alone. Thousands of people navigate this transition every week, and with the right approach (and a clear head), you can turn this setback into a setup for something even better. The key is to break it down into manageable chunks rather than trying to solve everything at once.
We’ve put together a comprehensive timeline to guide you through the process. From the immediate financial admin to the long-term career strategy, here is your ultimate out of work checklist to help you get back on your feet.
Immediate actions (the first few days)
Before you panic-apply to fifty random jobs, take a breath. The first few days are about securing your finances and getting your paperwork in order.
Check your paperwork and final pay
First things first, make sure you know exactly what you’re owed. When you leave a job, you shouldn’t just walk away empty-handed. You need to check your contract to see what your notice period is and ensure you’re being paid for it, either by working it or receiving Payment in Lieu of Notice (PILON).
You also need to secure your P45. This isn’t just a boring tax form – it’s essential for ensuring you aren’t emergency taxed when you start your next role, and you’ll need the details from it to apply for benefits.
Work out your redundancy pay
If you’ve been made redundant, you will probably be entitled to redundancy pay. This usually applies if you’ve been with your employer for two years or more.
The government provides a statutory redundancy pay calculator, which you can use to get a personalised plan of what you’re likely to receive. Depending on the contract you signed with your company, you may even be able to get a little more (known as contractual redundancy pay). It’s worth digging out that old contract to check.
Apply for benefits immediately
Don’t let pride get in the way of claiming what you’re owed. It can take up to five weeks to receive your first payment for some benefits, so the sooner you apply, the better.
Losing your job may leave gaps in your National Insurance record. However, you could be credited with contributions provided you are in receipt of certain benefits. This will help maximise your basic state pension, if you’re out of or unable to work.
Some benefits you may be entitled to include:
- New Style Jobseeker’s Allowance (JSA). If you’ve paid enough Class 1 National Insurance contributions in the last 2 to 3 years, you can apply for New Style JSA. The great thing about this is that it’s not means-tested, meaning your savings or your partner’s income won’t affect how much you get. It’s usually paid for up to 6 months. Apply via gov.uk/jobseekers-allowance.
- Universal Credit. This is a monthly payment to help with living costs. It’s means-tested, so the amount you get depends on your savings and household income. It includes a standard allowance plus extra amounts for housing, children, or disability. Apply online at gov.uk/universal-credit.
- Council Tax Reduction. If your income has dropped significantly, you don’t want to be paying full Council Tax. You may be eligible for a reduction. Apply through your local council: gov.uk/find-local-council.
Talk to your landlord or mortgage provider
One of the most important things to be sure of if you experience job loss is that your home is safe. For this reason, you should always talk to your landlord or mortgage provider as soon as possible.
Most lenders are understanding if you communicate with them early – and your mortgage lender may be able to make arrangements to extend your mortgage term or reduce your monthly payments temporarily. You never know until you ask, and it’s always better to take action quickly if you can.
Mid-term steps (the next few weeks)
Once the initial shock has worn off and the urgent admin is done, it’s time to take stock of your situation and prepare for the hunt.
Review your budget
If your income has dropped, it’s likely you will have to review your budget and spending to keep costs down. We know, looking at spreadsheets isn’t exactly a fun Friday night activity, but it’s vital right now.
Some people are put off by the idea of budget planning, but it is simpler than it sounds – it’s just a list of your incomings and outgoings to help you work out where you can cut back. Maybe it’s time to pause that premium streaming subscription you haven’t watched in three months, or swap the expensive gym membership for home workouts (at least for now).
Money Helper has excellent tools for keeping track of your money if you don’t have an income coming in.
Talk to a debt advisor
If you feel your debts are spiralling out of control, you don’t have to face it alone. Talking to a debt advisor is free and confidential. Organisations like StepChange or Citizens Advice can offer a lifeline when things feel heavy.
Get advice about your CV
Once you know where you’re at with your money, start thinking about what you’re going to do next.
If it’s been a while since you’ve looked for a new job, you may need to take the time to brush up on your CV and interview skills. Trends change, and a CV that worked five years ago might not cut it in 2026.
We’ve got lots of advice on Reed.co.uk to help out, no matter how long you’ve been out of work. So whether you’re looking for a redundancy CV template, a guide on how to explain a gap in your CV, or just some help with the most common interview questions that could come up, we’ve got you covered.
Secure your references
Don’t wait until you have a job offer to chase people for references. Reach out to previous managers or colleagues now. Ask them if they’d be willing to provide a positive reference or write a recommendation on your LinkedIn profile. It’s a great way to boost your credibility while you search.
Long-term strategy (moving forward)
Now you’re ready to look forward. This isn’t just about finding a job; it’s about finding the right job.
Start your search
Finally, with your finances in check and your CV sorted, it’s time to start searching.
Although it might seem overwhelming at first, try getting into the same routine each day. Treat job hunting like a job in itself. Set an alarm, get dressed (yes, even if you aren’t leaving the house), and dedicate specific hours to applications. Not only will it help add structure to your search, it’s also proven to have a number of benefits when it comes to your mental health.
If you’re looking for work right now, there are thousands of roles added to Reed.co.uk every single day – from full-time and part-time jobs, right through to temporary and seasonal roles.
Consider upskilling
If you’re finding that you’re missing out on roles because of a specific skills gap, now is the perfect time to plug it.
If you’re looking to upskill during your time off, we have a wide range of courses for anything you’re interested in learning. Whether it’s mastering Excel, learning to code, or getting a project management certification, adding a new string to your bow shows employers that you’re proactive and eager to learn.
Look after your mental health
Rejection is part of the process, but that doesn’t make it fun. It’s easy to let a job search consume you, but burnout won’t help you get hired.
Make sure you’re taking breaks, getting outside, and seeing friends. If you’re struggling, check out our guide on how to manage your mental health whilst jobseeking. Remember, your employment status does not define your worth.
Frequently asked questions
Here are a few common questions we hear from people navigating job loss.
Can I claim New Style JSA and Universal Credit at the same time?
Yes, you can. If you are eligible for both, you can claim them simultaneously. However, your New Style JSA payment will be deducted from your Universal Credit payment pound-for-pound, so you won’t necessarily end up with more money overall. The benefit of claiming JSA is that it pays Class 1 National Insurance credits, which helps protect your state pension.
What if my employer goes bust and can’t pay my redundancy?
If your employer becomes insolvent and cannot pay your statutory redundancy pay, you can apply to the government’s Redundancy Payments Service (RPS). They can also help with unpaid wages, holiday pay, and notice pay.
Do I have to pay tax on my redundancy pay?
Good news: redundancy pay is tax-free up to £30,000. However, other elements of your final pay packet, such as holiday pay or Payment in Lieu of Notice (PILON), are taxed as normal earnings.
How do I explain being fired or made redundant in an interview?
Honesty is the best policy, but keep it professional. If it was redundancy, simply explain the business reasons (e.g., restructuring). If you were fired, briefly explain what you learned from the experience and how you’ve grown since then. Focus on the future, not the past.
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